All posts tagged Acquisition

The news that Hot Topic is being acquired has the shares up nearly 30% this morning, a sign that not too many people saw this one coming.

But the announcement that private equity firm Sycamore Partners is taking Hot Topic private shouldn’t come as a surprise to B. Riley, which has been calling the alternative teen retailer a potential buyout target for months.

While the firm hasn’t yet issued a note on the acquisition, it’s worth noting that while the deal’s $14 a share price is less than half of the company’s all-time high of $32.30 seen in January 2004, the stock hasn’t closed above $14 since 2006. Of course, the years since 2006 have not been kind to most retailers.

Shares jump 29% to $13.89, just below the offer price, as trading resumes.

It’s not just Sprint shares that are sharply higher amid reports that Japanese peer Softbank might buy a controlling stake, or even all, of the US company. Its debt is rocking too, with Sprint bonds due March 2032 up 11 cents and November 2021 jumping 12.25 cents, according to MarketAxess data. “Softbank would benefit from the extensive infrastructure investments” Sprint has made the last several years, says Egan Jones. Shares are up 18% at $5.96.

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Global investment banks got a second-quarter revenue boost from a surge in Asian stock trading. But given China’s market volatility and stock declines in some other countries, those revenue gains may be hard to replicate.